Annual report pursuant to Section 13 and 15(d)

PRODUCT WARRANTY LIABILITY

v3.8.0.1
PRODUCT WARRANTY LIABILITY
 12 Months Ended
Dec. 31, 2017
Product Warranties Disclosures [Abstract]  
PRODUCT WARRANTY LIABILITY NOTE 8. PRODUCT WARRANTY LIABILITY
A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued recall programs was as follows:
 
 
December 31,
In millions 
 
2017
 
2016
 
2015
Balance, beginning of year
 
$
1,414

 
$
1,404

 
$
1,283

Provision for warranties issued
 
557

 
334

 
391

Deferred revenue on extended warranty contracts sold
 
240

 
231

 
290

Payments
 
(398
)
 
(385
)
 
(389
)
Amortization of deferred revenue on extended warranty contracts
 
(219
)
 
(201
)
 
(179
)
Changes in estimates for pre-existing warranties
 
85

 
44

 
20

Foreign currency translation
 
8

 
(13
)
 
(12
)
Balance, end of year
 
$
1,687

 
$
1,414

 
$
1,404


Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Consolidated Balance Sheets were as follows:
 
 
December 31,
 
 
In millions
 
2017
 
2016
 
Balance Sheet Location
Deferred revenue related to extended coverage programs
 
 
 
 
 
 
Current portion
 
$
231

 
$
218

 
Current portion of deferred revenue
Long-term portion
 
536

 
527

 
Other liabilities and deferred revenue
Total
 
$
767

 
$
745

 
 
 
 
 
 
 
 
 
Long-term portion of warranty liability
 
$
466

 
$
336

 
Other liabilities and deferred revenue